ARMED police closed off a street in a North-East village and surrounded a house for more than four hours following a raid at a nearby post office.

The drama began when two masked men, thought to be in possession of a handgun, burst into Moorside post office, near Consett, County Durham, at 2.30pm yesterday.

They demanded cash before fleeing the shop. The postmaster and a male customer were in the premises at the time. They were shaken, but otherwise unhurt.

No shots were fired.

Police were called and a 20- year-old man was arrested on suspicion of robbery outside a house in Thornfield Road, in the Moorside area.

A short time later, a second man was spoken to by officers in the street and he later elected to attend Stanley police station, where he was being questioned last night. He has not been arrested.

Police negotiators were called to the house and a woman was persuaded to leave three hours later. She agreed to attend a police station, and is not under arrest.

The house was surrounded, with up to nine police vehicles in the street, and firearms officers training their guns on the house.

Police wearing body armour with riot shields surrounded the property as a police helicopter hovered overhead.

The activity attracted the attention of about 70 people who watched the police operation.

A German shepherd police dog wearing a miniature video camera was deployed to search the house, and shortly before 7pm, police announced it was empty and the teams were stood down.

Last night detectives were studying CCTV images to help identify who was in the area at the time.

Acting Inspector Martin Willis said: "A more thorough and detailed search will be carried out.

At this stage, we cannot confirm whether we are looking for anyone else."

Anyone with information, or who saw the robbery, is asked to call police on 0845-60-60-365, or Crimestoppers on 0800-555111.